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QUESTION

Draw a bowed-out production possibilities curve (PPC) with an aggregate measure of medical services, Q, on the horizontal axis and an aggregate

Draw a bowed-out production possibilities curve (PPC) with an aggregate measure of medical services, Q, on the horizontal axis and an aggregate measure of all other goods (and services), Z, on the vertical axis. Discuss the implications of the following changes on the quantities of medical services and all other goods.

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